February Crude Oil
The Beverly Hillbillies striking of “black gold” elevated them to the highest of social classes. As it relates to the current state of today’s crude oil market I do not believe one stands to capitalize in any grand sense by delving into a long position at these levels. On my longer term price charts (weekly) the market has reached a major geometric convergence level. Several sloping studies have intersected at +/- 61.90. Giving 75 cents of wiggles room around the level expands the upside of the zone to +/- 62.65 ( using 1/3 of a weekly 14 period ATR). This coincides with what I have labeled as a prior 4th wave extreme established in the late spring of 2015. A natural resistance level as explained by the Elliott Wave Principle. I am not proposing any implementation of a short position but am rather expressing a viewpoint. In regards to that I reside in the camp of waiting for further evidence. A big part of the trading process to me is stalking the trade. Someone once said “patience is a virtue”. Please follow my postings as I plan to carefully monitor future price action to be on the lookout for the next big opportunity.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. I welcome you to contact me at Walsh Trading to discuss my assessment of this and any other market.